Loading…
China is pursuing supply-side reform in its fertilizer sector, with the Ministry of Industry and Information Technology studying how to optimize capacity. Outdated capacity would be forced to close while advanced capacity could receive government subsidies.
Urea and ammoniated phosphate plants ran at about 77% and 65% of capacity in 2016.
Closing obsolete nitrogen and phosphate capacity could tighten Chinese export availability over time, but the effect on prices depends on how fast closures happen and how much capacity is replaced.
worldfertilizer.comDavid RowlandsDec 27, 2017After 26 past neutral policy events, Urea moved a median -1.0% over 5 sessions (27% higher; middle half -4.1% to +0.6%), and -2.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
